The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

3.1.9.20 Income test - FTB Part B

FTB Part B income tests

The following table outlines the income tests that applyr to different individual's circumstances.

If the Individual is … then …
a single parent they are eligible for the maximum rate of FTB Part B if their income is equal to or below the primary earner income limit (1.1.I.45).
the higher income earner in a couple the primary income earner limit applies and the rate of FTB Part B will depend on the income of the lower income earner.
the lower income earner in the couple

Explanation: It does not matter if the lower income earner is not the primary carer of the children.

Example: Damien and Genevieve receive FTB Part B. Damien is self-employed and earns $7,500 and Genevieve earns $25,500 per year. Genevieve works part-time and is the primary carer of the children. FTB Part B is calculated on Damien's income of $7,500 as he is the lower income earner even though Genevieve is the primary carer.

 if their partner's income is equal to or lower than the primary income earner limit, an income test then applies to the lower earner's income to determine the rate of FTB Part B. Their FTB Part B is reduced by 20% of the income excess if their ATI (1.1.A.20) is more than their income free area (1.1.I.40).

Explanation: This amount is deducted from the maximum rate. The remaining amount is the individual's FTB Part B rate.

Special arrangements may apply to lower income earners in a couple returning to work for the first time after the birth of a child (3.1.9.30), or when an eligible child enters their care.

For information on how FTB Part A and FTB Part B are exempt from the income test for ATI for periods during the relevant income year (1.1.R.23) when the individual and/or their partner receive income support payments, refer to 6.4.2.20.

Act reference: FA(Admin)Act section 20 Determination of rate may be based on estimate, indexed estimate or indexed actual income, section 20A Indexed estimates, section 20B Indexed actual incomes

Policy reference: FA Guide 1.1.I.85 Indexed income - actual or estimate (FTB), 3.1.9.30 FTB Part B return to work, 6.4.2.20 Income test exemptions for individuals in receipt of income support, 3.1.1.20 Current FTB rates & income test amounts

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